Say No to Riba by Ivo Cerckel, writer - 19-Nov-08
If only Dubai was as bright as the Saudi ...

Dubai is in talks with the United Arab Emirates government over a loan facility that would make state funds available to companies as international sources of capital dry up., says the article.

Ivo:
What does that sentence mean?

The article concludes:
Borse Dubai said the rising cost of borrowing should be cancelled out by falling interest rates. “Even if Borse Dubai pays plus 300 basis points on the loan, the cost will be about the same,” said an official involved in the refinancing discussions.

Ivo:
Can somebody please explain to me how interest rates can fall if there is
only one lender
and an oversupply of would-be borrowers?

How can interest rates fall if there is only the lender of one and only resort,
who used to be called the lender of last resort,
to meet the heavy demand of would-be borrowers?

“Abu Said Al Khudri reported Allah’s messenger as saying: “gold for gold, silver for silver, wheat for wheat, barley for barley, dates for dates, and salt for salt. (When a transaction is) like for like, payment being made on the spot, then, if anyone gives more or asks more, he has dealt in riba, the receiver and the giver being equally guilty.”
Sahih Muslim

This Hadith of Prophet Muhammed establishes two things:
ONE ‘money’ in Islam is either precious metals such as gold and silver, or commodities such as wheat, barley, dates and salt.
TWO when gold, silver, wheat, barley, dates and salt were used as money, their value was ‘inside’ and not outside’ the money. Hence, it is established that ‘money’ in Islam must possess intrinsic value.
(Imran N. Hosein, “Explaining the Disappearance of Money with Intrinsic Value”, paper delivered at the International Conference on the Gold Dinar Economy, held in Kuala Lumpur, July 24-25, 2007)

Gulf Single Currency
Single currency 'will make Gulf more stronger'
Wednesday, 19th November 2008
http://www.gulf-daily-news.com/Story.asp?Article=235099&Sn=BUSI&IssueID=31244
SNIP
MANAMA: The GCC needs to accelerate its move towards a single currency which would make the whole region much stronger.
That was the message to the seminar from Standard Chartered Bank economist Marios Maratheftis.
Once the states put in place a central bank and the necessary institutions a common currency could be up and running in a matter of weeks, he said.
"People talk about the problem of convergence before setting up a single currency but that is not an issue here," he said.
"With the exception of Kuwait all the GCC currencies are pegged to the dollar so you have in effect a single currency in place.

On a positive note, Mr Maratheftis said that in the wake of the crisis the GCC should push ahead faster in adopting a single currency which, if backed by a strong regional government bond market could pave the way for a free floating currency that would be attractive to central banks around the world as a hedge against fluctuations in the oil price.
( Cash is king in turmoil
By ARTHUR MACDONALD
19th November 2008
http://www.gulf-daily-news.com/Story.asp?Article=235102&Sn=BUSI&IssueID=31244

Saudis spurn chance to help IMF
Financial Times
Sunday, Nov 16, 2008
http://www.zawya.com/story.cfm/sid20081116_26848_81/Spurning%20IMF

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